Reliance MediaWorks shares down 7 %

Shares of Reliance MediaWorks nosedived by 7.2 per cent intra-day on the Bombay Stock Exchange to Rs. 61.40 from its previous close of Rs. 66.05 in the wake of reports that the U.S.-based Digital Domain Group, founded by James Cameron of 'Titanic' movie fame, filed for bankruptcy proceedings.

But the shares recovered subsequently to close at Rs. 64.35, still down by 2.57 per cent, after the company clarified that it had an exposure of approximately Rs. 30 crore to Digital Domain against the reported figure of Rs. 140 crore.

Reliance Media, in a release to the BSE, said that “a section of the media has incorrectly reported that our company has an exposure of approximately Rs. 140 crore to a customer, Digital Domain Media Group, which has recently filed for bankruptcy proceedings in the U.S. It is clarified that the figure is factually inaccurate, and the actual exposure is limited to Rs. 30 crore towards billed revenues due, which are also actively being pursued with the new management."